Analyst Note| Aaron Degagne |
Exact Sciences had a mixed second quarter, with solid top-line growth offset by higher-than-expected sales costs and lower COVID-19 testing revenue. We maintain our $76 fair value estimate and no-moat rating. With the stock down about 7% afterhours, the market appears to be reacting to lower guidance caused by temporary factors. However, even if the stock decline holds, shares will remain materially overvalued, in our view.